In the short run, a market consists of 100 identical firms. The market price is $6, and the total cost to each firm of producing various levels of output is given in the table below. What will total quantity supplied be in the market?

Question

Quizplus · Accepted Answer

To determine the total quantity supplied in the market, we need to add up the quantity supplied by each individual firm at the given price of $6.
At a price of $6, each firm will supply the quantity where the marginal cost is equal to the price. Looking at the table, we can see that at a price of $6, each firm will supply 2 units of output (where MC = $6).
Therefore, total quantity supplied in the market will be 100 firms x 2 units per firm = 200 units. 
Option B is the correct answer.

In the Short Run, a Market Consists of 100 Identical